My surprise at Walmart’s $16.6 billion investment in Flipkart–India’s largest e-commerce retailer–is two-fold. First, Walmart’s presence in India is tiny–Walmart spent to prevent Amazon from gaining a stronger foothold in India. It is surprising since Walmart’s history of global expansion is generally unsuccessful. Walmart has been trying to enter India for 15 years, and while the competition (Amazon) has been successful in that country, Walmart has not.

Walmart’s global achievements are very checkered. The company’s entry into Germany in 1998 was unsuccessful, and it had to withdraw after eight years. Its American style of management, high local labor costs and, ultimately, 85 stores were not enough to create a positive impact on consumers and gain their loyalty. Withdrawal from Germany was estimated to cost $1 billion.

And in China, Walmart’s entry has been overshadowed by Alibaba’s dominance, and both Amazon and Walmart are losing share of market in that country. Walmart has tried to strengthen its presence by working with JD.com, investing more than $3 billion in Chinese e-commerce and Chinese fashion e-commerce.

The Flipkart headquarters in Bangalore, India (AP Photo/Aijaz Rahi)

The recent sale of ASDA to Sainsbury in Great Britain attests to the fact that the competitive environment caused by Aldi and Lidl made it hard for Walmart’s management to continue a profitable venture. Similarly, because of weak management and poor performance against competitor Carrefour, Walmart has operating losses in Brazil. I hear that there may be a partial withdrawal from that country as well. While operations in Canada and Mexico have been very successful, one must conclude that the unprofitable results of many of the global operations have stunted Walmart’s potential growth.

With this disappointing track record globally, it is difficult for me to justify management’s rationale to enter India when growth of the domestic business hovers below 2%. It is here that Walmart should excel and pursue growth.

Marc Lore, CEO of Jet.com (Photographer: Patrick T. Fallon/Bloomberg)

The purchase of Jet.com for $3.3 billion revived the Walmart e-commerce business because Jet.com’s CEO Marc Lore turned out to be a "catalyst" manager who stimulated Walmart.com growth. Yet, Jet.com now seems to be almost irrelevant as a brand name, since the Walmart name has greater consumer awareness and the company’s focus is on expanding the Walmart.com operation. As a result, Jet.com is slowly fading. However, some of the initiatives adopted under Lore’s leadership, which includes free two-day delivery, pick-up in store, ease of return, and a larger assortment, all seem to please Walmart customers. So, essentially Walmart spent $3.3 billion (a very hefty price tag) to acquire a new e-commerce CEO who moved the whole Walmart e-commerce operation back from the West Coast to New Jersey. Once again, Walmart’s management overspent. However, the one bright spot is that Marc Lore has created excitement that is invaluable. Hopefully, the organization can sustain that positive energy.

Walmart has also been on a strategy to diversify its offerings. It has made some acquisitions that include men’s fashion apparel brand Bonabos and the indie online retailer Modcloth. Both seek to trade up the assortment available through domestic stores and on the web. A related, more puzzling action is Walmart’s agreement to feature Lord & Taylor offerings in a dedicated e-commerce site. However, Walmart’s relationship with the iconic store is troubled. The branded internet site seems to have trouble attracting brand-name vendors. Many do not want to be on the Walmart platform. I also wonder whether the loyal Walmart customer is really shopping in the price bracket that this new initiative suggests. It’s not clear these efforts to offer fashion at a higher price-point will work.

In the meantime, Amazon has perfected its marketplace platform and strengthened its relationship with a growing herd of consumers who flockto the site. Fast delivery, Amazon Prime and increasing global presence have made this technology-driven retailer a winner. While prices are not always the lowest, they are competitive and customers trust Amazon’s offerings. Amazon has resonated with the millennial and Gen Z generations, spurring great growth. These young people prefer to own very little, want to shop late at night and get it quickly the next day–and Amazon accommodates them with ease.

Sam Walton created a company that was customer-centric. He was everywhere to speak to customers and associates. He insisted on quality merchandise and quality service. And that philosophy propelled Walmart to a leadership position. Walmart’s management has the potential of being a leader again by rethinking its domestic operation just as Costco has done in recent months. The shift of consumer’s preferences in shopping, in attitude and immediacy, must be met by this retail giant. I hope Flipkart is not another misstep that becomes a distraction in the future.

I was the senior retail analyst at Morgan Stanley for 16 years, following a 20 year career at retailers including Macy’s, May Department Stores and Allied Stores. Currently I head Loeb Associates Inc. a management consulting and strategic advisory firm for leading domestic ...